Monsanto confirms Bayer has made bid to take over company

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Bayer of Germany has made a takeover bid for Monsanto, potentially signaling another huge merger in the business of crop seeds and pesticides.

While the companies did not disclose details of the offer, a tie-up of the two companies would yield a giant whose products encompass antibiotics, genetically modified crop seeds and pesticides. It would have a combined annual revenue of more than $67 billion.

In a short statement late Wednesday, Monsanto said its board was reviewing the proposal. Bayer said early Thursday that it had recently met with Monsanto executives to discuss a potential deal, saying it “would create a leading integrated agriculture business.”…

As crop prices fall, analysts and investors have anticipated a flurry of deals among companies that service the farming industry. Monsanto, which failed to buy its rival Syngenta last year, has been seen as a potentially attractive takeover target.

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Bayer and BASF had each expressed interest in exploring some kind of joint venture with Monsanto in recent months.

It was unclear whether Monsanto is interested in pursuing a sale to either Bayer or BASF. A top executive at the seed company told Reuters at an investor conference on Wednesday that talk of a deal with either company was “wild speculation.”